Paper 2: The wider economic environment · 8EB0/02

Edexcel B AS Paper 2, November 2020

All 11 written questions from Edexcel B AS Paper 2 (November 2020), The wider economic environment. Case studies: E-commerce not the reason for UK high street woes, The irresistible rise of alternative milks has dairy… and Relaxed air quality targets are plaguing northern China…. Each question shows its marks and topic, and opens the question paper and mark scheme at the right page.

Question paper Mark scheme

Summer exams were cancelled, so this paper was sat in the autumn series. The paper itself is headed with the original summer date.

Section A

Case study

E-commerce not the reason for UK high street woes

Extracts: A: E-commerce not the reason for UK high street woes · B: UK labour market: December 2018

In the extracts: CBRE, National Minimum Wage, European Union, Brexit-related, Rhodri Davies, E-commerce, Inflation, Employed, Labour, Until

Q1(a)Define2 marks

What is meant by the term ‘aggregate demand’?

Mark splitKnowledge 2

TopicImpact of globalisation on local and national economies

Question paper p.3 Mark scheme p.4 Open in the tool

Q1(b)Calculate4 marks

Using Extract B, calculate, to 2 decimal places, the rate of unemployment for the UK in December 2018. You are advised to show your working.

Mark splitKnowledge 1Application 3

TopicImpact of globalisation on local and national economies

Question paper p.3 Mark scheme p.4 Open in the tool

Q1(c)Calculate4 marks

Using Extract A, calculate, to 2 decimal places, the change in real earnings for October 2018. You are advised to show your working.

Mark splitKnowledge 1Application 3

TopicThe economic cycle

Question paper p.4 Mark scheme p.5 Open in the tool

Q1(d)Discuss8 marks

Discuss the possible benefits of e-commerce for consumers.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 2

TopicImpact of globalisation on local and national economies

Question paper p.5 Mark scheme p.6 Open in the tool

Q1(e)Assess12 marks

Assess the likely impact on retailers of a fall in UK unemployment.

Mark splitKnowledge 2Application 2Analysis 4Evaluation 4

TopicImpact of globalisation on local and national economies

Question paper p.7 Mark scheme p.8 Open in the tool

Section B

Case study

The irresistible rise of alternative milks has dairy farmers worried

Extracts: C: The irresistible rise of alternative milks has dairy farmers worried · D: Vegans rocked by oat milk shortage · E: Londoners, Oatly will pay for 80% of your coffee

In the extracts: Oatly, According, Swedish, Hackney Coffee Company, Barista Oat Drink, General Manager, Oatly CEO Toni, Semi and Whole, Unfortunately, Sales of UK

Q2(a)Define2 marks

What is meant by the term ‘product life cycle’?

Mark splitKnowledge 2

TopicIntroducing the market

Question paper p.12 Mark scheme p.10 Open in the tool

Q2(b)Calculate4 marks

Calculate the price elasticity of demand (PED) for Oatly’s oat drinks. You are advised to show your working.

Mark splitKnowledge 1Application 3

TopicFirms, consumers and elasticities of demand

Question paper p.12 Mark scheme p.10 Open in the tool

Q2(c)Explain4 marks

Explain one possible benefit for Oatly of operating in a niche market.

Mark splitKnowledge 1Application 2Analysis 1

TopicIntroducing the market

Question paper p.13 Mark scheme p.11 Open in the tool

Q2(d)Discuss8 marks

Discuss the implications of an over-utilisation of capacity for Oatly.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 2

TopicIntroducing the market

Question paper p.14 Mark scheme p.12 Open in the tool

Q2(e)Assess12 marks

Assess the likely benefits for Oatly of using penetration pricing for the launch of its new products in the UK.

Mark splitKnowledge 2Application 2Analysis 4Evaluation 4

TopicFirms, consumers and elasticities of demand

Question paper p.16 Mark scheme p.14 Open in the tool

Section C

Case study

Relaxed air quality targets are plaguing northern China with air pollution

Extracts: F: Relaxed air quality targets are plaguing northern China with air pollution

In the extracts: China, According, Beijing, World Health Organization, Northern China, Greenpeace, Relaxed, Chinese

Q3Evaluate20 marks

Evaluate the extent to which there is a trade-off between economic growth and negative externalities for a country such as China.

Mark splitKnowledge 4Application 4Analysis 6Evaluation 6

TopicThe economic cycle

Question paper p.20 Mark scheme p.16 Open in the tool Practise the negative externality diagram Practise the PPF diagram

Question text is quoted from the question papers, © Pearson Edexcel, for students’ private study. Open the official papers and mark schemes from the links on each question. Examiner insights are written with AI assistance and moderated by Finn.

Section A

E-commerce not the reason for UK high street woes

Section B

The irresistible rise of alternative milks has dairy farmers worried

Section C

Relaxed air quality targets are plaguing northern China with air pollution

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